Livzon profit slumps on price cuts, but new drug approvals build pipeline
First-half profit and revenue drop sharply Livzon's first-half net profit fell 27.2% to 932 million yuan and revenue dropped 20.3% to 5 billion yuan. Chemical drug sales fell 25% on medical insurance price cuts and national volume-based procurement, while TCM sales fell 35% as flu demand faded. This weak earnings picture is the main drag on the stock.
The profit decline is the single biggest force pushing the stock down this period.
New leuprorelin three-month microsphere approval Shanghai Livzon won approval for an 11.25mg three-month leuprorelin acetate microsphere injection, a Category B insurance-listed drug for breast cancer, prostate cancer and precocious puberty. It is the only domestic maker of this dosage form, in a market worth about 10.9 billion yuan where three-month forms are 27%.
A genuinely new, exclusive product approval that can add future revenue and offsets the weak earnings.
New TCM granule approval enriches product line Livzon's Sichuan Guangda unit received a drug registration certificate for Banxia Baizhu Tianma Decoction Granules, its first Category 3.1 new traditional Chinese medicine. The approval adds to the product pipeline, though the company gave no launch timing or sales forecast, so the near-term financial benefit is limited.
A new product approval that supports the pipeline story, though small in scale.
Parent Joincare's weak finances and guarantee load Parent Joincare disclosed a 2.069 billion yuan guarantee balance, including guarantees for Livzon units, while its 2025 and first-quarter revenue and profit both fell. This adds a modest financial-risk overhang, though the guarantees are not overdue and Livzon's own operating cash flow actually rose 4.5%.
Shows the parent-level financial backdrop and guarantee exposure that color sentiment on Livzon.